ING latest lender to hike variable home loan rates

By Tom Watson · · 2 min read
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Online lender ING has become the latest bank to lift its variable home loan rates following an announcement earlier today.

The lender will raise rates across all of its variable rate home loan products by 15 basis points, effective as of February 7, 2019.

The out of cycle move comes just a week after major bank NAB finally succumbed to increased funding pressure by raising a number of its key variable rate home loan products by between 12 and 16 basis points.

RELATED: Last to fall: NAB hikes home loan rates, here’s how it stacks up to the other big banks

And according to Mozo Product Data Manager, Peter Marshall, today’s decision by ING to increase rates was likely influenced by similar factors.

“It’s a pretty big move and I think it’s a reflection of the bank bill swap rate remaining elevated. A lot of banks moved rates last year to cover increased funding costs and while the bank bill swap rate did fall back a bit towards the end of last year, it has since jumped again.”

“As a result of the latest jump I think it’s very likely that we’ll see even more lenders looking to increase variable rates in the near future - something I fully expect the RBA to consider when making their rates decision.”  

Is it time to make a move?

So just how hard will the latest rates hikes from ING hit their customers pockets?

Mozo calculated that an ING owner occupier customer paying principal and interest on a  $400,000 Orange Advantage Package home loan will pay an extra $411 in repayments each year as a result of the lift from 3.78% to 3.93%.  

“The simple fact is that ING customers will now be paying more on their mortgage repayments, so now is probably the time to be looking around to see if there are any better options out there,” said Marshall.

“ING often have good rates but they’re not the best in the market, so there are plenty of other lenders, particularly smaller ones, where borrowers can go to find themselves a better deal.”  

Top 5 variable rates in the Mozo database*

3.44% - Reduce Home Loans Rate Lovers Variable Home Loan

3.49% - Easy Street Standard Variable Home Loan

3.49% - Well Home Loans Well Balanced

3.54% - FreedomLend Variable Home Loan

3.54% - Homestar Variable Rate Loan

Looking for a more competitive home loan deal? Check out some of the hot offers below, or head over to the Mozo home loan comparison tables for more great deals.   

*Rates accurate as of 31/01/2019 an calculated on a $400,000 owner occupier principal and interest home loan with an LVR of 80%

Home loan comparisons on Mozo

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Last updated 27 July 2024 Important disclosures and comparison rate warning*

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    $3,043
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    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

  • Special Real Deal Home Loan

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    $3,027
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    Refinancers or first home buyers pay no monthly or annual fees. Up to $3,000 cashback when you complete your home loan application online. $2,000 cashback on loans ≥$250K; or $3,000 cashback on loans ≥$500K. LVR ≤80%. T&Cs and credit criteria apply.

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
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    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • OMG Home Loan

    • Owner Occupier
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    Interest rate
    5.99 % p.a.
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    6.02 % p.a.
    Initial monthly repayment
    $2,995
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    BCU Bank’s OMG owner occupied home loan offers a variety of great low rates depending on your deposit. Save with no ongoing annual fees. Access your extra payments when you need to through the redraw facility. Pre-approval valid for 3 months.

  • Express Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <90%
    Interest rate
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    Initial monthly repayment
    $3,001
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    Get online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.

  • Neat Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.11 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

  • Special Real Deal Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.13 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Refinancers or first home buyers pay no monthly or annual fees. Up to $3,000 cashback when you complete your home loan application online. $2,000 cashback on loans ≥$250K; or $3,000 cashback on loans ≥$500K. LVR ≤80%. T&Cs and credit criteria apply.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

  • Flex Home Loan

    • Owner Occupier
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    • LVR <60%
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    6.14 % p.a.
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    6.38 % p.a.
    Initial monthly repayment
    $3,043
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    Competitive variable rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

  • Offset Home Loan

    • Owner Occupier
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    Interest rate
    6.14 % p.a.
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    6.39 % p.a.
    Initial monthly repayment
    $3,043
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    Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.

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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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